South America Agricultural Films - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026 - 2031)

According to Mordor Intelligence, the South America agricultural films market size is expected to grow from USD 540 million in 2025 to USD 574.67 million in 2026 and is forecast to reach USD 784.92 million by 2031 at 6.42% CAGR over 2026-2031.

This report is Segmented by Type (Low-Density Polyethylene, Linear Low-Density Polyethylene, High-Density Polyethylene, and More), by Application (Greenhouse Covering, Silage and Stretch Wrap, Mulching Films, Fumigation and Solarization, and More), and by Geography (Brazil, Argentina, and More). The Market Forecasts are Provided in Terms of Value (USD).

South America Agricultural Films Market Trends and Insights

Rising Adoption of Greenhouse Farming

Mid-sized greenhouse installations for tomatoes, peppers, and cucumbers are proliferating across Brazil's interior and Argentina's peri-urban zones, driven by urban demand for year-round fresh produce and the need to buffer against erratic rainfall. Chile's greenhouse tomato production reached 180,000 metric tons in 2023, primarily concentrated in Coquimbo, Valparaiso, and the Metropolitan Region, where growers utilize Low-Density Polyethylene (LDPE) and Ethyl Vinyl Acetate/Ethylene Butyl Acrylate (EVA/EBA) films with anti-drip additives to minimize disease pressure. The capital intensity of these structures, typically 30 to 40% above bare-soil systems, is being offset by cooperative purchasing models and leasing arrangements brokered through regional extension services. Satellite mapping studies published in Nature Food during 2024 identified a 12% annual increase in greenhouse footprint across South America's temperate zones, a rate that outpaces global averages and signals sustained film demand.

Growth of Protected Horticulture Exports

Export-oriented berry, grape, and avocado sectors are shifting to plasticulture to meet stringent phytosanitary and cosmetic standards imposed by North American and European buyers. Peru's blueberry exports totaled USD 1.5 billion in 2024, sourced from 23,000 hectares in La Libertad and Ica, where drip irrigation under mulch films reduces water consumption by 40% and lifts marketable yields by 25%. Chile's grape sector, which accounts for 9% of global fresh table grape exports, is transitioning from open-field to netted and partially covered systems that shield fruit from hail and sunburn, a trend that increases demand for greenhouse-grade polyethylene with enhanced tensile strength. The premium pricing these crops command justifies the incremental cost of specialty films, creating a virtuous cycle where export revenue funds further plasticulture adoption.

Environmental Concerns and Plastic-Waste Legislation

Brazil's Decree 12,688, enacted in November 2024, mandates reverse logistics for plastic packaging, requiring a 32% recovery rate and 22% recycled content by 2026, with the goal of escalating to 50% recovery by 2040 . These regulations compel converters to invest in mechanical-recycling infrastructure and source post-consumer resin, raising production costs by 10 to 15% according to industry estimates. Compliance frameworks such as ISO 14021 for recycled-content claims and EN 13432 for compostability are becoming de facto market-entry requirements, favoring larger players with dedicated sustainability teams. The enforcement timeline remains uncertain in Argentina and Colombia, where budget constraints limit the capacity of environmental agencies to audit film waste streams, creating a patchwork regulatory landscape that complicates regional supply-chain planning.

Other drivers and restraints analyzed in the detailed report include:

1. Government Incentives for Climate-Smart Agriculture
2. Expansion of High-Value Berry and Avocado Crops
3. High Initial Cost Versus Conventional Coverings

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

Low-Density Polyethylene (LDPE) captured 41.95% of the South America agricultural films market size in 2025, underpinned by its cost advantage, ease of processing, and proven performance in mulching and silage applications across Brazil's strawberry belt and Argentina's greenhouse vegetable zones. The dominance of Low-Density Polyethylene (LDPE) reflects its versatility across multiple applications and the installed base of extrusion equipment optimized for its melt-flow characteristics. Low-Density Polyethylene (LDPE) puncture resistance makes it the preferred choice for silage wrap, where a single tear can compromise anaerobic fermentation and lead to feed spoilage.

Biodegradable and bio-based films, which are projected to advance at an 11.10% CAGR through 2031, are driven by Braskem's bio-PE capacity expansion to 191 kilotons in 2024 and regulatory tailwinds from Brazil's recycled-content mandates. The shift toward biodegradable films is accelerating in organic-certified operations, where post-harvest film removal is labor-intensive and costly, but mainstream adoption hinges on further cost reductions and field trials demonstrating equivalent agronomic performance. Compliance with EN 17033 and ISO 17033 standards for soil biodegradability is emerging as a baseline requirement for market access in Chile and Brazil, a dynamic that favors suppliers with formulation expertise and third-party certification.

Complete Report Scope:

• By Type
  • Low-Density Polyethylene (LDPE)
  • Linear Low-Density Polyethylene (LLDPE)
  • High-Density Polyethylene (HDPE)
  • Ethyl Vinyl Acetate / Ethylene Butyl Acrylate (EVA/EBA)
  • Biodegradable/Bio-based Films
• By Application
  • Greenhouse Covering
  • Silage and Stretch Wrap
  • Mulching Films
  • Fumigation and Solarization
  • Others
• By Geography
  • Brazil
  • Argentina
  • Chile
  • Colombia
  • Rest of South America

List of Companies Covered in this Report:

1. Dow Inc.
2. Berry Global Inc.
3. BASF SE
4. Manupackaging Deutschland GmbH & Co. KG
5. Agroflex Industria de Plasticos Ltda.
6. Novamont S.p.A.
7. RKW SE
8. Trioplast Industrier AB
9. Armando Alvarez S.A.
10. Polifilm Extrusion GmbH
11. Groupe Barbier SAS
12. Ginegar Plastic Products Ltd.
13. Braskem S.A.
14. Coveris Management GmbH
15. Plastika Kritis S.A.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support